Final answer:
Direct exporting is when a company sells goods directly to customers in foreign markets. In the given scenario, if a U.S.-based company contracts with a trading house to enter the Chinese market, it would be considered as direct exporting.
Step-by-step explanation:
Direct exporting is a method of expanding business activities internationally by selling goods directly to customers in foreign markets. In the given scenario, if a U.S.-based company contracts with Lee Industries, a trading house, to enter the Chinese market, it would be considered as direct exporting. The U.S. company is selling its products directly to customers in China through the trading house, without involving any intermediaries.